Below is a progress update on the various outstanding aspects of DigitalTown’s bankruptcy case, adversary case and reporting requirements:
Main Bankruptcy Case
- An amended Plan of Reorganization is expected to be filed before the end of July. The plan is being amended to incorporate details of what has transpired since the last filing, and to strengthen details around financial commitments, pursuant to recommendations received from various authorities.
- The filing of the amended plan will trigger the scheduling of our plan confirmation date.
- The plan confirmation date, along with any other relevant details, will be shared as the information becomes available.
- The status conference scheduled last week (July 15) was accidentally scheduled by the Courts under the main case, but was actually meant to be scheduled under the adversary case, and was subsequently stricken from the main case’s schedule (see below). This does not mean the entire case was stricken.
- Pomije’s non-dischargeability claims were dismissed by Judge Constantine at our June 16, 2021 hearing. This was pivotal in moving the main case forward. The dismissal of these non-dischargeability claims means Mr. Pomije’s claim (approximately $1.8 million as filed by Mr. Pomije in his Proof of Claim) is dischargeable in bankruptcy. This means that Pomije’s claim will not be excepted from the discharge when the company obtains confirmation of its plan; and that Pomije’s claim can be treated under the plan.
- DigitalTown has amended its counterclaim. DigitalTown seeks to reduce the amount of Pomije’s claim; and our affirmative claims against Pomije remain and will be pursued through the continuation of the adversary proceedings.
- The status conference scheduled last week was scheduled at the request of Pomije’s new attorneys to get up to speed on the details of the case. Minor scheduling changes related to discovery resulted.
- Court referred mediation is still underway.
- DigitalTown is in the process of subscribing to OTC Market’s Disclosure and News Service.
- We are preparing the necessary reports with the goal of being current in our filings prior to the September SEC-imposed deadline.